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disasters and agriculture in the pacific islands - Pacific Disaster Net

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A major export <strong>in</strong>dustry that was generat<strong>in</strong>g anannual export <strong>in</strong>come of $WS9.5 million. This<strong>in</strong>dustry was exp<strong>and</strong><strong>in</strong>g at a rate of 7 percentper annum; <strong>and</strong>The preferred staple food valued at $WS27.5million (derived by <strong>the</strong> ADB 1995 from amarket price of $WS.36/lb <strong>in</strong> 1993 prior to <strong>the</strong>blight <strong>and</strong> consumption at <strong>the</strong> time ofO.5kg/person/ day).Without any adjustments for resource allocations,this represents a total loss almost $WS40 million,equivalent to about 11 per cent of GDP <strong>in</strong> 1995.Of course <strong>the</strong>re have been resource adjustments,with l<strong>and</strong> <strong>and</strong> labour moved <strong>in</strong>to production ofo<strong>the</strong>r subsistence <strong>and</strong> commercial crops. Theannual net impact of taro blight has thusprogressively decl<strong>in</strong>ed s<strong>in</strong>ce 1993. It is notpossible to precisely estimate what this decl<strong>in</strong>emight amount to, but assum<strong>in</strong>g it is around 20 percent per year, <strong>the</strong> total cost of taro leaf blight up to<strong>the</strong> end of 1997 would have been almost $W150million. Additional costs identified by <strong>the</strong> ADBSector Review <strong>in</strong>clude: higher cost to consumers of substitute staplefoods (banana, ta'amu, <strong>and</strong> bread fruit); <strong>and</strong> research cost <strong>in</strong> develop<strong>in</strong>g resistant varietiesacceptable to consumers.When all th<strong>in</strong>gs are considered, <strong>the</strong> cost of taroleaf blight is of a similar magnitude to <strong>the</strong> officialestimate cost of Cyclone Val to Samoa'sproductive sectors (Table 7).For most countries <strong>the</strong> loss of its ma<strong>in</strong> food <strong>and</strong>export earner would be a disaster of catastrophicproportions. Yet Samoa quickly adjusted to thisdisaster. There was no fam<strong>in</strong>e. Export levels havenow been restored. This is testimony to <strong>the</strong>"hidden strength" of seem<strong>in</strong>gly weak <strong>Pacific</strong>isl<strong>and</strong> economies, <strong>and</strong> of Samoa <strong>in</strong> particular, thatlies with <strong>the</strong> traditional food production system.By January 1995, people were produc<strong>in</strong>g adequatefood to meet <strong>the</strong>ir needs. The prices of alternativecrops (bananas, ta'amu, breadfruit, yams) on <strong>the</strong>domestic markets had also dropped to low levels,as village households began produc<strong>in</strong>g marketablesurpluses. Paulson <strong>and</strong>loss of revenue from <strong>the</strong> suspension <strong>in</strong> 1993 ofexports of green banana to ensure adequatelocal food supply;<strong>in</strong>creased expenditure on imported rice <strong>and</strong>flour <strong>in</strong> 1994 <strong>and</strong> part of 1995 until o<strong>the</strong>r localfood substitutes came on stream. The estimated<strong>in</strong>crease <strong>in</strong> imports was $WS3.1 million;<strong>in</strong>itial government expenditure of $WS645,000to control <strong>the</strong> disease;a government subsidy of $WS82,000 forfungicides;

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